Posted On:Wed, 25 Jun 2014 12:39:51 GMT
Workers named debt collection companies after their colleagues One of the most eye-catching things about Wonga's is the news that the firm had sent letters from two third party law firms that turned out to be none another than Wonga itself."Chainey, D'Amato & Shannon" and "Barker and Lowe Legal Recoveries", which issued threatening letters on Wonga's behalf, sound realistic enough and plenty of Wonga customers were understandably taken in by them. But it turns out that all the names used were, or are, employees of Wonga (who the firm say had nothing to do with sending out the letters)... more

Posted On:Wed, 25 Jun 2014 11:33:18 GMT
Archbishop of Canterbury attacks loan sharks but how, pray tell, does the church justify its investment in payday lender Wonga?Justin Welby, the archbishop of Canterbury, has promised to put payday lenders such as Wonga out of business by setting up credit unions. He also acknowledged last week that because credit unions were not being set up quickly enough, there was a gap in the availability of credit which could force individuals into the hands of loan sharks., Welby pointed out that loan sharks sometimes turn up with baseball bats if customers do not pay. It now turns out that Wonga if its customers miss their repayments... more

Posted On:Tue, 03 Sep 2013 10:57:00 GMT
Financial hardship and chronic stress trigger cognitive biases that are ripe for exploitation by payday lenders such as Wonga borrowed £10 from the online money lender Wonga. Just a few weeks later, interest charges, late payment fees and bank overdraft penalties had inflated her debt, and she found herself owing £85 with no money to buy food.Cases like Lindsey's are increasingly common in the wake of the financial crisis: payday loan-related calls to the advice service National Debtline have risen since 2007. But payday loan companies such as Wonga are cashing in, enjoying annual profits of as cash-strapped consumers turn to short-term loans with mind-bogglingly high interest rates... more

Posted On:Thu, 27 Jun 2013 13:10:49 GMT
The scale of repayment problems around 2.7m loans weren't paid back on time in 2012 shows serious failings among payday lendersThe Office of Fair Trading's decision to has put the spotlight firmly on this type of credit and its impact on borrowers.So it should be, because what was until a few years ago a relatively unknown form of lending is now a £2bn industry, and almost one in five people with debt problems are now struggling with payday loans... more

Posted On:Tue, 04 Jun 2013 12:32:09 GMT
From the Wonga puppets to Speedy Roo, the payday loan charm offensive is just that, says Pete CashmoreIf you live in the UK and own a TV then you are no doubt familiar with Betty, Joyce and Earl. You will know how they are all adorably dotty and work in the same office; that Betty and Joyce usually have something to say, most often disparaging remarks about Earl's harebrained ideas; and that they like to watch films together, during which naughty Earl lets his wrinkly hand wander and gets his wrist slapped.In fact, with the exception of Go Compare's moustachioed tenor, Betty, Joyce and Earl are probably the most recognisable current characters in TV advertising, cropping up with increasing frequency. They are the "Wongies", the lovable face of payday loan firm Wonga (typical APR 4,214%)... more

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